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26 January 14 41 25 JACK
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Early Repayment Charges: What They Are & How They Work

If you're thinking of switching mortgage deals or making a large overpayment on your loan, you may come across something called an Early Repayment Charge (ERC). These charges can catch many homeowners off guard and cost a significant amount of money—unless you know what to look out for.

In this post, we’ll break down what ERCs are, when they apply, how they’re calculated, and—most importantly—how to avoid them where possible.

What is an Early Repayment Charge?

An Early Repayment Charge (ERC) is a fee your mortgage lender may charge if you:

  • Pay off your mortgage in full before the end of your deal term
  • Remortgage to a new lender before your deal ends
  • Overpay more than your allowed limit in a year

ERCs are designed to compensate lenders for the interest they lose when a mortgage is paid off early—especially during fixed-rate or tracker periods where you've agreed to borrow at a specific rate for a set number of years.

When Do ERCs Apply?

ERCs usually apply during the initial deal period of your mortgage—commonly a 2-, 3-, or 5-year fixed or tracker term. If you move to a new lender, switch deals, or repay your loan early during this time, your lender may charge you an ERC.

Always check your mortgage documents or speak to your broker to confirm when your current deal ends and whether ERCs apply.

How Are ERCs Calculated?

ERCs are typically calculated as a percentage of the outstanding mortgage balance. The exact percentage depends on your lender and how early in your deal you exit.

Here’s an example:

If you owe £200,000 and your ERC is 2%, you'd pay a £4,000 fee.

Some lenders use a sliding scale—meaning the percentage decreases the further into your deal you are.

Why Do Lenders Charge ERCs?

When you take out a fixed or tracker mortgage, the lender plans their finances based on you sticking with that deal for a certain period. If you leave early, the lender may lose money—ERCs are their way of recovering that cost.

Can You Avoid Paying an ERC?

Yes—in some cases. Here’s how:

Time your switch carefully. Wait until your deal ends to remortgage or pay off your loan. Most lenders allow you to start a new application a few months early (commonly 3–6 months) to avoid overlap.

Use your annual overpayment allowance. Most lenders let you overpay up to 10% of your balance each year without penalty.

Port your mortgage. If you’re moving house, some lenders let you port your deal to the new property and avoid ERCs (more on that in our porting blog!).

Speak to a broker. We’ll help you weigh up whether it’s worth paying the ERC—or if a better deal could save you more in the long run.

Final Thoughts: Always Check Before You Act

ERCs aren’t always avoidable—but understanding them can help you plan better, save money, and avoid unpleasant surprises.

Whether you're thinking of moving, remortgaging, or overpaying, make sure you know where you stand. And remember, the right mortgage advice can save you thousands.

📲 Need help working out if an ERC applies—or if paying it makes financial sense?
Get in touch with us today for straightforward, no-obligation advice.

26 January 14 42 52 JACK
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What Does It Mean to Port Your Mortgage?

If you’re thinking about moving house but still have time left on your current mortgage deal, you might have heard the term “porting your mortgage.” But what does that actually mean—and is it the right move for you?

Here’s everything you need to know about mortgage porting, including how it works, the pros and cons, and why speaking to a broker can make the whole process much easier.

What Is Porting a Mortgage?

Porting a mortgage simply means transferring your existing mortgage deal (including your interest rate and lender) from your current property to a new one. Essentially, you're taking your mortgage with you when you move.

It sounds simple—and in many cases, it can be—but there are a few important things to consider.

Why Do People Port Their Mortgage?

Porting is often a popular option for people who are:
✅ On a competitive fixed or tracker rate they want to keep
✅ Facing Early Repayment Charges (ERCs) if they end their deal early
✅ Looking to move before their mortgage term is up

By porting your mortgage, you can hold onto a good rate and avoid additional fees—what’s not to like?

How Does It Work?

Even though you’re staying with the same lender, you’ll still need to apply to port your mortgage. Here’s what typically happens:

  1. You apply for permission to port.
  2. Your lender reassesses your affordability for the new property—just like a standard mortgage application.
  3. The new property is valued, and your lender ensures it meets their lending criteria.
  4. If approved, your mortgage deal moves with you.

If your new home is more expensive than your current one, you may need a top-up mortgage for the difference—this might come with a different interest rate.

Things to Watch Out For

While porting can be a great option, it’s not always the best choice. Keep in mind:

  • Not all mortgages are portable—check your deal's terms.
  • You’ll still go through the full affordability and credit checks.
  • If you're borrowing more, the additional amount may be on a higher rate.
  • You could miss out on better deals by not exploring the wider market.

Should You Port or Look for a New Deal?

This really depends on your circumstances—how much you’re borrowing, your current deal, and what’s available on the market.

Sometimes, paying an Early Repayment Charge to access a more competitive deal actually saves money long-term. Other times, porting is the most efficient way forward.

Why Speak to a Mortgage Broker?

Porting your mortgage might sound straightforward—but it can quickly become complicated. That’s where we come in.

At go2mortgages, we’ll help you:

  • Understand if your mortgage is portable
  • Deal with the paperwork and lender conversations
  • Compare whether porting or remortgaging is better for you
  • Save time, stress, and potentially a lot of money

📲 Thinking of moving home? Don’t make any decisions until you’ve spoken to a broker. We’re here to help you move smart, not just move fast.

Ready to chat?
Get in touch with our team today and we’ll help you figure out the best next step—whether that’s porting your mortgage or exploring a brand-new deal.

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Buying Your First Family Home: Mortgage Tips for New Parents

Becoming a parent brings many exciting changes, and for many families in the UK, one of the biggest milestones is buying their first home. Whether you’re moving from a rented property or upgrading to a larger space, purchasing a home as a new parent comes with unique financial considerations. From budgeting wisely to choosing the right mortgage and finding a family-friendly area, here’s what you need to know.

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Why Life Insurance is Essential for Growing Families

For new parents, the focus is often on immediate needs: feedings, nappies, sleepless nights, and navigating each new stage of a child’s life. Yet, one of the most valuable gifts parents can give their families is a long-term sense of security. Life insurance may seem like an afterthought when you’re busy raising a family, but it’s one of the most impactful ways to ensure your family is protected. Here’s why life insurance is essential for growing families and how it provides a lasting peace of mind.

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Understanding the Benefits of Critical Illness Cover for Families

When it comes to financial planning, preparing for the unexpected is one of the most responsible steps any family can take. Critical illness cover is one form of insurance that helps protect families in case of sudden, serious health issues. This type of cover provides a lump sum payment if you’re diagnosed with a qualifying illness, which can be a financial lifeline for families navigating serious health challenges. Here, we’ll look at how critical illness cover offers essential benefits, especially for parents.

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Securing Your Child’s Future: The Role of Life Insurance in Long-Term Planning

As parents, we work hard to provide our children with the best possible start in life. From ensuring they receive a quality education to giving them the financial security to chase their dreams, planning for their future is a priority. While savings accounts and investment plans are often the first things that come to mind, life insurance is a crucial yet often overlooked tool in long-term financial planning.

Life insurance isn’t just about protecting against the unexpected—it’s about ensuring that your child’s future remains financially secure no matter what happens. Here’s how life insurance can play a key role in securing your child’s long-term stability.

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Income Protection: Safeguarding Your Family's Financial Future

When you’re the primary earner or one of the major contributors to your family’s income, the thought of an unexpected illness, injury, or even taking maternity or paternity leave without enough income can feel daunting. That’s where income protection comes in—a type of insurance designed to provide a regular income if you are unable to work due to illness, injury, or, in some policies, specific family-related absences. Let’s dive into how it works, why it’s crucial, and how it can be a lifeline for parents.

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Do my children affect my mortgage affordability?

When you're considering buying a home in the UK, one of the key factors lenders look at is your mortgage affordability. This assessment determines how much you can borrow based on your financial situation. If you have children, you might wonder if they affect your mortgage affordability. The short answer is yes, they do. Here’s a closer look at how children can influence your mortgage application.

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